Whenever people start talking about the dollar losing its place as the global reserve currency I always ask what they think will replace it any time soon. Certainly not the Chinese Yuan.
In any case the same people that say this also way overemphasize the benefits of the dollar as the global reserve currency. It mostly provides seigniorage.
And these same people get causation exactly backwards. All the benefits they assign to the dollar as the global reserve currency actually are what make the dollar the global reserve currency. And they are precisely why the Yuan won't be it for the foreseeable future.
Paul Krugman is many things, but listen to him when he talks international currencies- it is where his academic expertise lies:
https://www.nytimes.com/2023/02/03/opinion/us-dollar-reserve-currency.html
I write this not to toot the horn of the dollar or anything. I really suggest reading the Krugman piece, regardless of how you feel about him. When he is talking within his wheelhouse he knows exactly what he is talking about. And this is his wheelhouse. The dollar as reserve currency is a meme at this point. It really doesn't provide all the benefits the conspiracy theorists and the crypto and gold bug crowds think it does.
@tipu curate 8
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Upvoted 👌 (Mana: 0/8) Get profit votes with @tipU :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit